# Present Value of Annuity Calculator

Present Value of Annuity Calculator is an online investment assessment tool to determine the time value of money. Annuity value, interest rate and time period are the key factors to figure out the present value of an annuity. The term present value of annuity is used in investment plans to describe an present money value of a future value of annuity. By using this calculator one can determine how much amount of money to be invested now at a certain percentage of interest to get the desired amount of money value after the certain period of time. It can be used in mortgages to make a early pay off in a single payment. The below formula is used in present value of annuity calculator to figure out the time value of money today

Where

P is the regular payments

R is the percentage rate of compound interest

n is the total number of years